Era Group Inc. has returned two of its Eurocopter EC225 Super Puma helicopters in the Gulf of Mexico to service, and plans to resume operations of two other EC225 helicopters in the Gulf of Mexico by the end of August, the company reported on Tuesday.
Much of the offshore EC225 fleet was grounded in October 2012 after two Super Pumas ditched in the North Sea following gear shaft failures. Regulatory authorities approved appropriate preventive safety measures in July, clearing the way for the helicopters’ return to service. However, operators’ timelines for resuming EC225 operations vary.
Era provided the update on its EC225 activities in the course of announcing its second-quarter financial results. The company reported net income for its second quarter ended June 30, 2013 of $5.1 million on operating revenues of $74.2 million compared to net income of $3.6 million on operating revenues of $63.0 million in the prior year period.
Operating income for the current quarter was $10.8 million compared to operating income of $7.4 million in the prior year period. Earnings before interest, taxes, depreciation and amortization, adjusted to exclude SEACOR management fees and certain other items (“Adjusted EBITDA”), was $23.2 million for the current quarter compared to $18.5 million for the prior year period. Second quarter results for the current year included $4.5 million in gains on asset dispositions compared with $1.1 million in gains in the second quarter of 2012.
The $11.3 million increase in operating revenues related to $8.7 million of additional revenues from oil and gas activities primarily due to a greater number of medium helicopters being placed in service as a result of increased deepwater activity in the U.S. Gulf of Mexico; the resumption of services with a customer in Alaska that had been temporarily suspended in the prior year period; and a new international contract that commenced in January 2013. In addition, contract-leasing revenues increased $3.7 million, primarily due to the recognition of previously deferred revenues related to two of Era’s customers in Brazil and India. Operating revenues from flightseeing and Era’s fixed base operation in Alaska experienced increases of $0.2 million and $0.4 million, respectively, primarily the result of better weather conditions which led to an increase in flying activity. These increases were partially offset by a $1.7 million reduction in operating revenues from air medical services due to the conclusion of three long-term hospital contracts in effect during the prior year period.
Operating expenses were $7.9 million higher reflecting primarily an increase in repairs and maintenance costs as a result of the timing of repairs in 2013 and the absence of the benefit from vendor credits recognized in the same period in the prior year.
Administrative and general expenses were $2.4 million higher primarily due to an increase in costs associated with being an independent public company and an increase in compensation and employee costs, primarily the result of share-based compensation related to incentive equity awards granted following Era’s spin-off from SEACOR Holdings Inc.
